DOGECOIN (DOGE) has become known for its unpredictable price swings, often influenced by memes and social media. Now, however, there are signs that a potential drop can be on the horizon. This time, it is not only speculation – the popular technical indicator Bollinger Bands points towards a real risk.
A tool that many traders use to analyze market trends are Bollinger strips, which are based on a 20 -day mobile average and two outdoor bands. These bands follow price volatility and when the price of an asset reaches the upper strip, it often indicates excessive conditions, the lower – occurrence.
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At the same time, if the price falls below the intermediate line represented by the mobile average, it may indicate a weakening of the momentum.
Currently, Dogecoin price is just below the line – about $ 0.266 – while the median is $ 0.276. This suggests that Dogecoin is not in a strong increased position. More worrying, however, is the lower band, which is currently $ 0.219. If the Dogecoin bulls find it difficult to recover the price above the critical line, there is a real risk that the price will derive towards this lower strip.
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While DOGE Surprised the market several times before, the current data indicates a greater chance of decline rather than a recovery. There seems to be a greater chance of lowering to $ 0.219 than a gang rally more than $ 0.332.
So what is the next step? Without a clear reversal, a potential decrease of 20% remains the main scenario. If the week closes above the median, it could point out a strong bullish dynamic and open the opportunity to Doge to increase 20% in the coming days.